5 Challenges to Tackle When Starting a Bitcoin Exchange Business

how to start a bitcoin exchange business

Bitcoin, the first cryptocurrency launched has been bringing in profits to the traders. Probably, you would have heard of the price surge which happened the previous month. This fantastic cryptocurrency has filled the pockets of the investors!

If you are one such investor interested to start bitcoin exchange business, then this article is for you! Come, let us move in-depth to know more!

What is a Bitcoin Exchange Business? Why is Bitcoin Exchange Business so important?

Initially, if you are a newbie to the crypto space, know what a Bitcoin Exchange Business actually is! With this, investors and traders can buy, sell or trade the cryptocurrencies instantly to gain benefits!

To put it simply, in a crypto exchange business, the sellers will try to sell the cryptocurrencies at a higher rate while the buyers will expect to buy them at a lower rate. The buying and selling details will be entered in the order book. When the buyer or seller places the same price, the orders will be automatically executed. The exchange in between will have a small piece of the fee charged as a commission for trade!

Okay, so why it is crucial to consider the Bitcoin Exchange Business? Here is the answer:

There are chances that someday no banks will be left out to control our lives. We’ll be paying directly the cryptocurrencies for goods and services. Starting a Bitcoin Exchange Business can always be rewarding and can compete with other enterprises globally. The truth is that loads of bitcoins exchange businesses can bring in profits to potential investors.

If you have a user-friendly and intuitive UI, there are high chances of dividends you can earn. Moreover, in the early stages of cryptocurrency development, we need this vital peer to peer bitcoin exchange business to facilitate transactions to help this technology alive. So, to get started with the exchange is not just about money, it can also change the world!

Once you are clear about the importance of the exchange business, the next thing you should know is the potential challenges you will face!

Challenges of Bitcoin Exchange Business:

Regardless of any cryptocurrency exchange business, Bitcoin Exchange Business also has some risks:

Therefore before you launch your own bitcoin exchange business it is important that you know the challenges:

Security:

This is the most important challenge you may come across. The sites made for these purposes should be strong to keep the Bitcoins stored. The target of hackers or intruders is to get hold of all the Bitcoins and thus it is essential to give importance to this step.

Adaptability:

This is another feature while considering a Bitcoin Exchange Business. As the market fluctuates every day, those fluctuations should be fast and easily adapted by your Bitcoin Exchange. Remember this as well!

Privacy:

The investors or traders in your platform may always look for privacy or anonymity and ensure it from.

Scalability:

Many cryptocurrencies will have growth limitations. In adherence to user activity, the system performance will reflect. So growth limitation can also be a challenge here.

Legal Nuance:

There are countries where Cryptocurrency and Bitcoin Exchange Business are illegal. Countries such as Bangladesh, Vietnam, Bolivia consider this as finance terrorism.

Decide on all these challenges initially and if you are ready with all these, you can kick-start the bitcoin exchange business.

So, How to create a bitcoin exchange business? What are the steps involved?

Okay, so you know the challenges you will face. Now it is the time to get started with developing your exchange business. Here are the primary steps to start your own bitcoin exchange business.

Whatever the business it may be, the primary thing is to have sufficient funds for your venture!

Give a deep analysis of your market:

Do plenty of research on the current market as well. Know how the Bitcoin Exchange became successful, and the future scope also.

Without the sound-knowledge on the domain and market, you can lack profit! So do remember to have thorough research on the product, the current and future market.

Geographical Location:

Location is the next step while initiating your business. Know whether your Bitcoin Exchange Business should be operated globally or only in countries of your choice.

Once you have chosen the location, the next thing is to know the legal guidelines of the country. Because some countries would have banned Bitcoin while some welcome it with red carpet! Added, have a legal advisor with you to know all these!

So, have a legal license so that you can start your Bitcoin Exchange Business.

Competition is everything before you start your business. So, know your competitors in the market and give an analysis of how they work, what they do, etc.

Marketing Plans:

Now you can access your target market. Yes, now you know your competitors, the current market and everything. Now, do pre-marketing bitcoin exchange business plan that will work and make your site accessible globally.

Here are a few plans which you can carry out:
  • Drafting a Business Brochure and sending it to crypto traders, programmers, investors, etc.
  • Advertising the business through social media platforms.
  • To list the services in yellow pages.
  • Engaging different services of marketing executives and developers for direct marketing.

And much more!

Build your site:

Now it is time for your tech-savvy team! Your programs need to bring out a user-friendly interface to gain potential traders. It would be helpful for the users if you provide real-time trading, live price, and other features.

Secondly, the key factor for success is the security. There have been several cryptocurrency profile hacks recorded in recent years. For ensuring security, there are strategies such as two-factor authentication which you can implement.

Moreover, Customer Satisfaction is another constraint you should remember. However, if you satisfy a couple of criteria’s which have been discussed, there are chances that you will have a high customer satisfaction done.

Get feedbacks from intended audiences:

Now you have done everything from your end. It is time to gain feedback from your customers.

Go live through Beta Testing. Collect feedback from your target audience and re-implement them for enhancement.

Now, you can start your Bitcoin Exchange Business! 🙂

Customer Support:

The final thing is the Customer Support. Your users may face some issues, have some queries. Have customer support for your business to resolve these.

Businesses, especially exchanges that have Customer Support are fruitful and reliable trade platforms. A quick connect with your support people can guarantee your clients that you are trustworthy!!

How Coinsclone overcomes the challenges in bitcoin exchange business?

As a Bitcoin Exchange Provider, we people have the following done to resolve the challenges stated above!

  • When it comes to Security, we highly render Decentralized Bitcoin Exchanges. This can give your users the fact that they have complete control of the transactions without the intervention of third-parties. However, if our clients are looking for Centralized exchanges, we implement security factors like encrypted databases, utilizing cold wallet storages, etc.
  • Secondly is the adaptability factor. Our Bitcoin Exchanges are so reliable and fast that it updates the fluctuations instantly.
  • Next is Scalability. We increase the block size and make the bitcoin exchange website a customizable one. We use centralized Blockchains and allow a part of offline transactions.
  • Finally the legal nuance. Our legal advisors are readily available and suggest the clients on the legalization.

Added, we render the following features to the bitcoin exchange business:

  • Trade Engine.
  • User Wallet.
  • Admin Panel.
  • Escrow Security.
  • Know your Customer System.
  • Liquidity and API.

If you are looking for a Free Demo, you can click here!